The 11 Federal Home Loan Banks (FHLBanks) are currently working together to develop a future solution for providing collateral value for eNotes. As member-owned cooperatives, we understand eNotes provide many benefits to both our nearly 6,900 member institutions and their borrowers. While significant progress has been made around this effort, implementation timing is dependent on, among other things, system and process changes for each independent FHLBank. The requirements will be posted soon. Once they are in place, each individual FHLBank will set a timetable to provide collateral value for loans with eNotes.

What is an eNote?

A note executed electronically and stored in an eVault. A scanned image of a wet ink signature.
This video overview provides information around eNotes, specifically:
  • Detailed definition of an eNote (0:07)
  • Explanation of how a transferable record is equivalent to a paper wet signature (0:57)
  • Details around who controls an eNote (1:30)
  • Information on eVaults (1:40)
    • Guidelines for the authoritative copy (2:03)
    • eRegistry Information (2:25)
  • Clarification on what is NOT an eNote (3:11)
  • Information on SMARTDoc (4:01)
eNotes Overview

eNotes Overview

The Road to eNotes

We know Members have been talking about the convenience of using eNotes for a long time. Accepting residential mortgage eNotes as collateral is in sight. We have already conducted a significant amount of research as well as completed some key steps in our process. We will periodically update this page with resources as we continue our journey towards eNotes acceptance. 

eNotes Progress

  • The Journey Toward Accepting eNotes

    Researched Thoroughly

    • Attended demonstrations of eNotes and eVaults
    • Attended MISMO® (Mortgage Industry Standards Maintenance Organization) events and worked with industry professionals to better understand best practices and standards

    Engaged with Subject Matter Experts

    • Met with industry participants who are originating, selling and buying eNotes
    • Engaged the services of a professional to help Banks bridge the requirements with regulations
    • Provided stakeholder feedback to MERS® as part of its development of the Secured Party field to ensure the FHLBs' interest in eNotes is reflected on the MERS eRegistry

    Completed Key Action Steps

    • Formed working groups consisting of all 11 FHLBanks (the System) to evaluate eNotes as eligible collateral
    • Formed a System legal group to review agreements and requirements
    • Developed a governance committee and charter
    • Developed a strategic roadmap and implementation plan
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  • Planned Destinations on our eNote Journey
    • Implement a strategic roadmap
    • Create RFP to send to eVault vendors
    • Review and update agreements with vendors, members and shareholders
    • Testing eVault capabilities and MERS® reporting system integration into Bank operational systems
    • Continue to attend MISMO® and other industry events to keep up with the latest developments
    • Continue conversations with regulating bodies and industry participants regarding eNote marketability
    • Develop eNote pledging requirements for members and shareholders
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